Risk Factors Update Summary

• The company's sole source of revenue is from licensed products. Failure to comply with obligations could lead to loss of license rights. This could significantly impact financials.
• Potential loss of up to $8 million in gross proceeds if Preferred Warrants are not exercised.
• The company entered into a settlement agreement with DUSA for a lawsuit, agreeing to pay $22.5 million. A receivable of $6.4 million and $2.8 million was recorded.
• Need for additional 11,309,019 shares of Common Stock due to potential conversion of Series B-3 Preferred Stock.
• The company initiated a voluntary recall of Ameluz due to a manufacturing defect, impacting commercialization timelines.
• Series B-1 and Series B-3 Preferred Stock conversions could substantially increase shares eligible for resale.
• The company has a history of operating losses and accumulated deficit. Additional financing is crucial for strategic growth and sustainability.
• Rights Agreement expiration date changed from October 13, 2023, to June 30, 2026.
• The company entered into credit facilities with lenders, securing loans with a security interest in assets.
• PIPE Warrants accounting changed from liability to equity due to cashless settlement provision.
• The company received a notice from Nasdaq for non-compliance with the minimum bid price requirement, affecting listing status.
• The company issued unregistered shares in a private placement and warrants exercisable for common stock, potentially impacting stockholder dilution.